Patent Box - Medical and Biotech Innovation

Patent Box

A limited patent box scheme offers tax benefits for medical and biotech innovations to boost commercialisation and retain IP in Australia. The legislation includes a patent box scheme specifically for medical and biotechnology patents.

Corporate income derived from these patents is to be taxed at a tax rate of 17 per cent, down from the current rate of 30 per cent for a large business and 25 per cent for an SME.

“We want to see more innovation commercialised in Australia. Under the patent box, income earned from new patents that have been developed in Australia will be taxed at a concessional 17 per cent rate – almost half the rate that applies to large companies,” Mr Frydenberg said in his budget night speech. The patent box scheme is intended to encourage businesses to keep and increase R&D spending in Australia. The aim is to boost hiring in the med-tech sector.

If you would like assistance with patent box planning, strategy and design, please contact me directly.